Surge Price Ban: Should the Government Intervene in Free Markets?

PUBLISHED ON: April 22, 2016 | Duration: 21 min, 06 sec

Comparing surge pricing to daylight robbery the Delhi Chief Minister banned surge pricing in Delhi, with that Delhi became the second state after Karnataka which said no to rise in cab fare on account of rise in demand, as argued by two of India's major app based cab service providers. While the government's decision was welcomed whole-heartedly by the public, OLA & Uber raised concerns regarding their inability to ensure cab availability on roads in absence of the banned surge price mechanism. Some experts are also of the opinion that the government should be very circumspect before regulating and should do it only when something is against public interest or distorts the level playing field. Watch as the debate expands into new territories with questions being raised against both the government's decision and the business model of service providers.